January 30, 2005

The End of Gate 3 WorkClub? Part 1

Having been scooped on my own story by Heath Row at Fast Company (http://blog.fastcompany.com/archives/2005/01/27/work_space.html#comments) I bring bad news to those of you who were rooting for our little experiment in new work community in Emeryville, and good news for the other three of you who scoffed at the idea or the particular interpretation of it: I have decided to shut down the WorkClub in Emeryville. February will be our final month of operation.

The main reason for shutting down is lack of funds to do the serious kind of marketing that it is going to take to get subscriber traction – and the short runway I have left myself to generate this funding. The feedback I received in the early stages of development (and continue to get today) led me to believe that I would not need that runway – that fundraising was only needed for the next, expansion phase, which would be undertaken once the concept was proven in the single location. Hindsight proves me wrong.

Before admitting to too many mistakes (which are plentiful) I will first claim that much of the foresight that drove this project was largely correct. To summarize:

• There is a huge need for alternate, flexible work arrangements for people and companies who would like to base their operations, and that of their employees, out of their homes.
• People would really love to have a place to work in regularly that is very close to home.
• People prefer to work around other people they aren’t affiliated with than working alone.
• People are significantly more productive working around other people they aren’t formally affiliated with.
• People have intial resistance to not having a dedicated, lock up “office” to hang their shingle on, but get used to it, adapt to it and eventually come to prefer it once they realize that it actually fits the way they work.
• People really respond positively to well designed, light filled, comfortable spaces to work in – and are probably more productive working in them.

Ok, so I got a few things wrong too – or simply chose to ignore what I already knew well from having worked on dozens of innovations in consumer electronics and office systems over the years:

• Change happens slowly. Especially when it involves changing people’s behavior.
• Systemic change of any kind is the hardest to broach, and takes the longest time.
• Self employed people part with their money very reluctantly, even when it is for something they would really like to have.
• Corporations make decisions VERY slowly and embrace small changes with extreme resistance.
• Work and food are very closely associated for most people.
• Getting a work environment to function smoothly for 150 people, each with unique requirements, processes and preferences takes a lot of work, effort and diligence.
• People are way more attentive to things that don’t work smoothly than to things that do.
• The adage that “anything that can go wrong, will” is still pertinent, particularly with new, complex systems.
• “Build it and they will come” is a fantasy most suited to Hollywood movies.

I am by no means done with the WorkClub concept – as many have pointed out to me, it is inevitable that it will be done, somewhere, by someone. I have simply realized that in its full manifestation it is a vast enterprise – larger than any one individual or large corporation for that matter, can take on. So I will continue to write, evangelize and theorize about it . And look for people and organizations who are interested in collaborating in building one or the other piece of it. WorkClub isn’t any one place or concept. It is a complex social construct and business operation made up of networked physical spaces, technology and most importantly, people.

So going forward, this blog will become a forum for a discussion about WorkClub. I welcome you to collaborate – in this discussion or in the implementation of any pieces of it.

I'm tremendously disappointed for you. I think this is a great idea and I don't even live in the S.F. area. I know that this is the last thing you want to think about right now, but you might want to try and pitch this concept in a geographic region that has more of a commuting culture such as the Washington DC area where I live. I think it could be huge here.

I'm not sure, but one possible blockage to your success might be the IRS tax code regarding offices.

If many of your target audience work from their homes by dictate of their company or as self-employed, they are entitled to write off the "at-home" office costs. If they have access to another office, however, I believe the "at-home" office deduction is not allowed.

I believe the exception is if the office is in excess of some (?) miles distance from the "at-home" office.

I echo the thoughts of the others. You've got a great concept and good follow through...are you willing to fight for it? Something as significant as you are attempting to do won't come without a cost. Don't give up now just because it doesn't meet your "runway" length. Keep flying the plane, and it will clear the treetops.

I'm sorry I scooped you! I figured it was safe to blog because we'd talked about an entry -- and because you'd emailed members already. Kudos on an awesome project. Pick yourself up, dust yourself off, and start all over again!

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